Why we need to abolish fossil fuel subsidies

The author contends that G-20 governments are wasting public funds by subsidizing the discovery of 'unburnable carbon' while failing to uphold pledges to phase out inefficient fossil fuel subsidies. The text highlights a stark imbalance in global spending, with $600 billion supporting carbon-intensive energy compared to $90 billion for clean energy. It specifically identifies $88 billion in public financial support for fossil-fuel exploration across G-20 nations, arguing that such subsidies distort markets, benefit the middle class over the poor, and undermine the target of limiting global warming to 2ºC.

• There is a significant global disparity in energy funding, with approximately $600 billion spent on carbon-intensive energy subsidies compared to $90 billion for clean energy.
• G-20 countries provide around $88 billion in public financial support specifically for the discovery of new fossil-fuel reserves through tax breaks, state-owned enterprise spending, and financial institution transfers.
• Specific G-20 nations contribute substantial amounts to exploration: Australia spends about $3 billion annually, the US has increased funding to over $5 billion since 2009, and Britain provides approximately $1.2 billion mainly via North Sea oil tax breaks.
• To limit global warming to less than 2ºC above pre-industrial levels, the International Energy Agency indicates that no more than one-third of known fossil-fuel reserves can be exploited.
• In the European Union, the lack of credible carbon pricing—with emissions trading scheme prices around $7 a ton—and the presence of subsidies have led to a resurgence in coal use despite a target to cut CO2 emissions by 40% by 2030.

APA

Watkins, K. (2014). Why we need to abolish fossil fuel subsidies. World Economic Forum. https://www.weforum.org/stories/nature-and-biodiversity/why-we-need-to-abolish-fossil-fuel-subsidies/

Chicago

Watkins, Kevin. Why we need to abolish fossil fuel subsidies. World Economic Forum, 2014. https://www.weforum.org/stories/nature-and-biodiversity/why-we-need-to-abolish-fossil-fuel-subsidies/.

Wikipedia

{{cite press release |last1=Watkins |first1=Kevin |title=Why we need to abolish fossil fuel subsidies |publisher=World Economic Forum |date=11 November 2014 |url=https://www.weforum.org/stories/nature-and-biodiversity/why-we-need-to-abolish-fossil-fuel-subsidies/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{watkins2014why, author = {Watkins, Kevin}, title = {{Why we need to abolish fossil fuel subsidies}}, publisher = {World Economic Forum}, year = {2014}, month = nov, url = {https://www.weforum.org/stories/nature-and-biodiversity/why-we-need-to-abolish-fossil-fuel-subsidies/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }